State Department awards $3.9M contract for architectural services in France, with a 5-year duration

Contract Overview

Contract Amount: $3,895,731 ($3.9M)

Contractor: Studio MA, Inc.

Awarding Agency: Department of State

Start Date: 2022-09-28

End Date: 2028-09-27

Contract Duration: 2,191 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROJECT DEVELOPMENT AND DESIGN SERVICES IN MARSEILLE, FRANCE.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85018

State: Arizona Government Spending

Plain-Language Summary

Department of State obligated $3.9 million to STUDIO MA, INC. for work described as: PROJECT DEVELOPMENT AND DESIGN SERVICES IN MARSEILLE, FRANCE. Key points: 1. Contract awarded to Studio MA, Inc. for architectural services. 2. Project involves development and design services in Marseille, France. 3. The contract has a firm-fixed-price structure. 4. Duration of the contract is approximately 5 years. 5. This is a delivery order under a larger contract vehicle. 6. The contract was awarded through full and open competition.

Value Assessment

Rating: fair

The contract value of $3.9 million for architectural services over five years appears reasonable for international projects, especially considering potential complexities of working abroad. Benchmarking against similar international architectural design contracts is difficult without more specific project scope details. However, the firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and allows the government to select the best value offer. The number of bidders is not specified, but the open competition suggests a healthy market response for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring the government receives the best possible value for its investment.

Public Impact

Benefits the Department of State by providing necessary architectural services for its facilities or projects abroad. Services delivered include project development and design. Geographic impact is focused on Marseille, France. Workforce implications may include the employment of architects, designers, and related professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term international projects if not managed tightly.
Exchange rate fluctuations could impact the effective cost to the government if not accounted for.
Logistical challenges and compliance with local French regulations may add complexity and cost.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process.
Long contract duration allows for continuity of services and potential for economies of scale.

Sector Analysis

This contract falls within the Architectural Services sector (NAICS code 541310). This sector includes establishments primarily engaged in planning and designing buildings and other structures. The global market for architectural services is substantial, with government contracts forming a significant portion, particularly for overseas installations and embassies. Comparable spending benchmarks are difficult without knowing the specific nature of the project, but government contracts for international architectural design can range from hundreds of thousands to millions of dollars depending on scale and complexity.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, the prime contractor, Studio MA, Inc., may engage small businesses as subcontractors to fulfill portions of the contract, depending on their subcontracting plans and the nature of the work required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified architectural services. Transparency is generally maintained through contract award databases, though specific project details and performance reviews may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State Overseas Buildings Operations
Federal Architecture and Engineering Contracts
International Construction and Design Services

Risk Flags

Potential for scope creep in long-term international projects.
Reliance on a single contractor for a multi-year project.
Limited public information on specific project deliverables and contractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.9 million to STUDIO MA, INC.. PROJECT DEVELOPMENT AND DESIGN SERVICES IN MARSEILLE, FRANCE.

Who is the contractor on this award?

The obligated recipient is STUDIO MA, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2022-09-28. End: 2028-09-27.

What is the specific nature and scope of the architectural services required in Marseille, France?

The provided data indicates 'PROJECT DEVELOPMENT AND DESIGN SERVICES IN MARSEILLE, FRANCE' but lacks specific details on the scope. This could range from preliminary design studies for a new facility, renovation plans for an existing structure (such as an embassy or consulate), or master planning for a larger complex. The firm-fixed-price nature suggests a well-defined scope was established prior to award. Further details would likely be found in the contract's statement of work (SOW), which is not publicly available in this dataset. Understanding the precise scope is crucial for evaluating the value and appropriateness of the $3.9 million award over five years.

How does the $3.9 million contract value compare to similar architectural design projects for the Department of State or other agencies in Europe?

Benchmarking this $3.9 million contract against similar projects is challenging without more granular data on the specific services rendered and the scale of the project. Architectural services for government facilities abroad can vary significantly in cost due to factors like project complexity, security requirements, local labor costs, and regulatory compliance. For a five-year duration, this averages to approximately $780,000 per year. While this figure might seem substantial, it could be competitive for projects involving significant design development, potentially for new construction or major renovations of diplomatic facilities. A more precise comparison would require access to data on comparable contracts, including their scope, duration, and location.

What are the potential risks associated with a five-year architectural services contract in a foreign country?

Several risks are associated with a long-term contract for architectural services in a foreign country. These include potential scope creep if the project evolves beyond initial definitions, leading to cost increases or delays, although the firm-fixed-price structure aims to mitigate this. Geopolitical instability or changes in local regulations in France could impact project timelines and execution. Exchange rate fluctuations between the US dollar and the Euro could affect the contractor's profitability or the effective cost to the government if not properly hedged or accounted for in the contract. Furthermore, managing a project remotely requires robust communication and oversight mechanisms to ensure quality and adherence to specifications.

What is the track record of Studio MA, Inc. in performing federal contracts, particularly those involving international projects?

Information regarding the specific track record of Studio MA, Inc. in performing federal contracts, especially international ones, is not provided in the given dataset. To assess their capability and past performance, one would typically review their contract history, including past performance evaluations, any instances of contract disputes or terminations, and their experience with similar projects in terms of scope, value, and geographic location. Agencies often use past performance information as a key factor in the source selection process. Without this data, it's difficult to definitively assess their reliability for this specific project.

How does the firm-fixed-price (FFP) contract type influence the risk allocation and potential for cost savings for the government?

A firm-fixed-price (FFP) contract type places the majority of the cost risk on the contractor, Studio MA, Inc. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure provides the Department of State with significant cost certainty, as the total expenditure is known upfront. For the government, FFP contracts are generally preferred when the scope of work is well-defined and the risks are manageable. It incentivizes the contractor to control costs efficiently to maximize their profit margin. However, if the scope is not adequately defined, it could lead to disputes or the contractor potentially cutting corners on quality to meet the fixed price.

What is the significance of this contract being a 'delivery order' rather than a standalone contract?

This contract being a 'delivery order' signifies that it is a task order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) or other type of multiple-award contract vehicle. This implies that Studio MA, Inc. likely won a broader contract previously, allowing the Department of State to issue specific orders for work as needed. This approach can streamline the procurement process for subsequent needs, potentially reducing administrative burden and lead times. It also suggests that the Department of State has established a pool of pre-qualified contractors, and this delivery order represents one specific task within that larger framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4035 E INDIAN SCHOOL RD, PHOENIX, AZ, 85018

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,895,731

Exercised Options: $3,895,731

Current Obligation: $3,895,731

Actual Outlays: $992,398

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM19D0072

IDV Type: IDC

Timeline